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19 successful cost reduction projects within the last seven months

ConMoto ensures the competitiveness of clients in different industries

Especially when the economic situation is difficult, potential analyses are a proven method and the basis for reducing costs and increasing productivity. The comprehensive ConMoto potential analysis is based on standard modules that are individually adapted to our clients’ requirements. Each analysis includes the main elements of finance and performance as well as the corporate functions production, logistics/supply chain and order management. Other key issues and cross-sectional topics such as product development, purchasing, digitization of production or infrastructure are added depending on the respective assignment.

At a glance: Average results of 19 ConMoto potential analyses

Over the past seven months, ConMoto has carried out 19 such analysis projects in a wide range of industries: twelve in the automotive sector and six others, for example, in medical technology or plant engineering. The potential analysis is useful for companies of different sizes. At the recently assessed plants, the number of employees ranged from 176 to 2,466 and annual turnover between 28 and 593 million euros. The estimated savings potentials amounted to an average of 17.1 percent of the production costs – this figure alone shows convincingly what is feasible with a structured approach.

Productivity up, costs down

Cost savings are offset by increases in productivity. The analyses revealed productivity potentials of 34.6 percent in manufacturing and 39.5 percent in logistics on average. In the indirect areas, the average of possible cost reductions was 24.8 percent. The performance values identified feasible increases of the overall equipment effectiveness at an average of 25.6 percent. Lead times could be reduced by an average of 38.3 percent.

The actual potential analysis takes between one and two weeks, depending on the size of your company and the scope of the specific tasks. It concludes with the definition of measures (initial target concepts, a tactical implementation plan) and a blue-sky workshop. Currently, we are supporting our clients in implementation projects regarding the realization of these potentials. The ConMoto consultants work with a transparent hardness level system to check the cost impact and tools for close progress monitoring.

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